Cogent Comms (CCOI) AI Stock Analysis

• Market Cap: $1.68B
• Dividend Yield: 11.7%
• Average Volume (3M): 1.14M
• Price to Earnings (P/E): 102.8
• Beta (1Y): 0.43
• Revenue Growth: -6.64%
• EPS Growth: -569.94%
• Country: US
• Employees: 1,899
• Sector: Communication Services
• Sector Strength: 90
• Industry: Telecommunications Services
• EPS (TTM): -1.21
• Shares Outstanding: 49,182,710
• 10 Day Avg. Volume: 2,398,473
• 30 Day Avg. Volume: 1,144,959
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.77
• Enterprise Value/Revenue: 4.64
• Enterprise Value/Gross Profit: 13.86
• Enterprise Value/Ebitda: 28.16
• 1Y Price Target: $48.38
• Price Target Upside: 41.71% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 49 Neutral
• Price Target: $35.00 ▲(2.52% Upside)

Cogent Comms' overall stock score is driven by significant financial challenges, including high leverage and declining revenues. While there are positive aspects such as robust growth in specific revenue streams and strategic debt restructuring, the negative profitability and financial instability weigh heavily on the score. The high dividend yield and strategic corporate events provide some support but are not enough to offset the financial risks.

Positive Factors

Growth confidence

Management increased the long-term EBITDA margin expansion guide to 200 basis points per year, showing confidence in growth.

Market opportunities

Cogent retains an opportunity to take significant share within its product end markets.

Strategic interest

There is strong interest from multiple parties in the data center assets, indicating potential opportunities.

Negative Factors

Financial stability

The company's high leverage and quarterly dividend payout are unsustainable at the current operating trajectory.

Operational performance

Cogent fell short on all three main areas of focus: EBITDA, Waves, and data center sales progress.

Revenue challenges

The analyst maintains an underweight rating and lowers the price target to $45, citing continued revenue declines, slow wavelength revenue scaling, and ongoing cash flow issues.

Cogent Comms Business Overview & Revenue Model

Company Description

Cogent Communications Holdings, Inc., through its subsidiaries, provides high-speed Internet access, private network, and data center colocation space services in North America, Europe, Asia, South America, Australia, and Africa. The company offers on-net Internet access and private network services to law firms, financial services firms, and advertising and marketing firms, as well as heath care providers, educational institutions and other professional services businesses, other Internet service providers, telephone companies, cable television companies, Web hosting companies, media service providers, mobile phone operators, content delivery network companies, and commercial content and application service providers. It also provides Internet access and private network services to customers that are not located in buildings directly connected to its network; and on-net services to customers located in buildings that are physically connected to its network. In addition, the company offers off-net services to corporate customers using other carriers' circuits to provide the last mile portion of the link from the customers' premises to the network. Further, it operates data centers that allow its customers to collocate their equipment and access the network. The company operates 54 data centers and provides facilities to 3,035 buildings and on-net services to 1,817 to multi-tenant office buildings. It serves primarily to small and medium-sized businesses, communications service providers, and other bandwidth-intensive organizations. Cogent Communications Holdings, Inc. was founded in 1999 and is headquartered in Washington, the District of Columbia.

How the Company Makes Money

Cogent Communications generates revenue primarily through the sale of Internet access and data services. The company's key revenue streams include monthly recurring charges from customers for bandwidth and connectivity services, as well as one-time setup fees for new installations. Cogent also earns revenue from colocation services, where customers pay for space and power within its data centers to house their servers and equipment. Additionally, strategic partnerships with other telecommunications providers and content delivery networks enhance its service offerings and expand its customer base, contributing to its overall earnings. The company's focus on providing competitive pricing and high-quality service helps retain customers and attract new business, further solidifying its revenue model.

Cogent Comms Financial Statement Overview

Summary

Cogent Comms faces significant financial challenges, with profitability and leverage being key concerns. The income statement shows pressure on margins and declining revenues, while the balance sheet reflects high leverage and negative equity. Cash flow issues are evident, with negative free cash flow posing liquidity risks. Strategic improvements are required to stabilize financial health and enhance performance.

Income Statement

Cogent Comms has shown inconsistent revenue growth with a decline in the most recent TTM period. The gross profit margin decreased, indicating potential cost pressures. The negative EBIT and net income highlight profitability challenges, though the EBITDA margin is positive, showing some operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio due to low equity, presenting significant leverage risk. With negative equity, the ROE cannot be calculated, indicating financial distress. The equity ratio also reflects a heavy reliance on debt financing, which may constrain financial flexibility.

Cash Flow

Free cash flow is negative, indicating challenges in generating cash after capital expenditures. The operating cash flow to net income ratio is low, suggesting operational inefficiencies. The negative free cash flow to net income ratio further emphasizes liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.00B	1.04B	940.92M	599.60M	589.80M	568.10M
Gross Profit	335.84M	394.27M	396.69M	371.45M	363.46M	348.95M
EBITDA	165.24M	161.29M	1.56B	208.43M	201.08M	190.47M
Net Income	-216.28M	-204.07M	1.27B	5.15M	48.19M	6.22M
Balance Sheet
Total Assets	3.27B	3.17B	3.21B	1.01B	984.56M	1.00B
Cash, Cash Equivalents and Short-Term Investments	306.73M	198.49M	75.09M	223.78M	319.61M	371.30M
Total Debt	2.67B	2.34B	1.83B	1.36B	1.26B	1.21B
Total Liabilities	3.22B	2.95B	2.60B	1.53B	1.36B	1.29B
Stockholders Equity	46.67M	222.85M	609.56M	-518.63M	-373.10M	-293.17M
Cash Flow
Free Cash Flow	-233.02M	-203.64M	-112.29M	94.74M	100.34M	84.37M
Operating Cash Flow	-13.38M	-8.64M	17.34M	173.71M	170.26M	140.32M
Investing Cash Flow	-119.64M	21.49M	76.73M	-78.97M	-69.92M	-55.95M
Financing Cash Flow	10.62M	105.92M	-257.85M	-144.85M	-140.82M	-116.00M

Cogent Comms Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 34.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCOI, the sentiment is Negative. The current price of 34.14 is below the 20-day moving average (MA) of 43.18, below the 50-day MA of 46.64, and below the 200-day MA of 61.79, indicating a bearish trend. The MACD of -4.10 indicates Positive momentum. The RSI at 28.95 is Positive, neither overbought nor oversold. The STOCH value of 28.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CCOI.

Cogent Comms Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IDT	75 Outperform	$1.58B	16.53	38.36%	0.35%	1.91%	169.96%
IRDM	72 Outperform	$2.64B	24.86	17.96%	2.24%	7.56%	38.78%
Sector *	60 Neutral	$44.01B	1.91	-11.93%	4.00%	2.46%	-39.70%
LBTYA	56 Neutral	$3.82B	―	-20.95%	―	3.53%	3.23%
TDS	55 Neutral	$4.19B	―	-0.81%	0.41%	-5.62%	80.09%
WOW	51 Neutral	$432.27M	―	-30.99%	―	-8.67%	63.35%
CCOI	49 Neutral	$1.68B	102.75	-93.59%	11.70%	-6.64%	-569.94%

Cogent Comms Corporate Events

Cogent Comms Announces New Financial Obligation

The news release from Cogent Comms lacks specific information about the company’s industry, products, or market focus. The release references internal document items without providing substantial details about the company’s operations or strategic implications, leaving stakeholders without clear insights.

The most recent analyst rating on (CCOI) stock is a Sell with a $65.00 price target. To see the full list of analyst forecasts on Cogent Comms stock, see the CCOI Stock Forecast page.

Cogent Comms Prices $600M Senior Secured Notes

On June 3, 2025, Cogent Communications Holdings, Inc. announced that its subsidiaries have priced an offering of $600 million in senior secured notes due 2032, with an interest rate of 6.500%. The proceeds from the offering will be used to redeem existing notes due 2026 and for general corporate purposes. The offering is expected to close on June 17, 2025, subject to customary conditions, and highlights Cogent’s strategic financial management to optimize its debt structure.

The most recent analyst rating on (CCOI) stock is a Sell with a $65.00 price target. To see the full list of analyst forecasts on Cogent Comms stock, see the CCOI Stock Forecast page.

Cogent Comms Announces $600M Senior Secured Notes Offering

On June 2, 2025, Cogent Communications Holdings, Inc. announced that its subsidiaries, Cogent Communications Group, LLC and Cogent Finance, Inc., plan to offer $600 million in senior secured notes due 2032 through a private placement. The proceeds from this offering are intended to redeem existing $500 million senior secured notes due 2026 and for general corporate purposes. The issuance aims to strengthen Cogent’s financial position by reducing its consolidated leverage ratio, which would be adjusted to 4.24x post-offering, enhancing its market competitiveness.

The most recent analyst rating on (CCOI) stock is a Sell with a $65.00 price target. To see the full list of analyst forecasts on Cogent Comms stock, see the CCOI Stock Forecast page.